When the Outcome is Employability: Leading Indicators for the Governance of Labour Market Services

The aim of this paper is to explore the relationship between output, leading outcome, and lagging outcome indicators in the governance of labour market services. To support the definition of human capital development policies, the adoption of an intermediate outcome indicator of employability is proposed. By crossing data from a survey on workers’ perception of their own employability with administrative data on individual employment conditions, this work tests the effectiveness of such indicator. Results suggest a positive relationship between subjective career success and outcome, confirming the importance of employability as a predictor of long-term labour market performance.